This is a tool that calculates the forward price of an asset in a forward contract.
For this calculation, it is necessary to supply the following information:
- The spot price of the asset.
- The term in years of the forward contract, i.e. when the forward price needs to be paid.
- The annualised, continuously compounded, risk-free interest rate. This is usually expressed in percentage terms (unless the formatting is explicitly set to express it as a decimal).
- The annualised, continuously compounded, dividend yield. This is usually expressed in percentage terms (unless the formatting is explicitly set to express it as a decimal).
Associated tool link: http://www.coggit.com/tools/forward_pricing_calculator.html